Editor's note: This brief was summarised by The Property AI Team from a report by Mortgage Strategy. Read the original article for full details.
Landlord Gross Yields Rise to 7.02% in Q2, Paragon Reports
UK landlord gross rental yields increased to 7.02% by the end of June 2024, up from 6.96% at the end of Q1, according to new data from Paragon. The lender’s Q2 buy-to-let yields report highlights continued growth in yields since 2021, when the figure stood at 5.84%.
Regional Yield Performance
The report identifies Scotland as the region with the strongest quarterly growth, with yields rising by 53 percentage points to 7.97%. The West Midlands saw a 24 percentage point increase to 7.24%, while Yorkshire & Humber yields rose by 21 percentage points to 7.58%. In contrast, Greater London experienced the largest decline, with yields falling 16 percentage points to 5.58%.
Wales maintained its position as the highest-yielding region at 8.87%. Scotland’s increase brought it level with the North East, both achieving yields of 7.97%. London (5.58%) and the South East (6.48%) remained the regions with the lowest yields.
Property Type Yields
By property type, Houses in Multiple Occupation (HMOs) continued to deliver the highest yields at 8.90%, up 14 percentage points. Multi-unit blocks followed at 7.18%. Flats and terraced houses also performed well, with yields of 6.45% and 6.31% respectively.
These findings are relevant for letting agents and inventory clerks monitoring regional and property-type trends in the UK rental market.
Source: Mortgage Strategy